First ECB, Now China Says Has "No Plans For Massive Stimulus"

First the ECB kicked the stimulus junkies in the crotch in the after hours session, now the PBOC is about to eat their faces for breakfast as both rumors causing overnight and intraday stock ramps are systematically denied. From Bloomberg: "China has no plan to introduce stimulus measures to support growth on the scale unleashed during the depths of the global credit crisis in 2008 according to the nation’s state-run Xinhua News Agency. “The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said yesterday in the seventh paragraph of a Chinese-language article on economic policy, without attributing the information. “The current efforts for stabilizing growth will not repeat the old way of three years ago." And with that the rug is pulled out from below anyone praying for non-Fed stimulus.

Which only means one thing: those addicted to monetary morphine better pray that this Friday's NFP number come at worse than -1,000,000 as otherwise, with the rest of the world just saying no to more inflation (and not having the safety of a $16 trillion shadow banking deposit-free inflation buffer), Bernanke just may not have the standing to unleash the final CTRL-P onslaught. Of course, with the global Bernanke Put sadly dominating habitual gambler thinking until at least one bank is allowed to fail under the weight of its countless liabilities, idiotic rumors such as these will continue sending risk higher, only to be denied, and to have the whole game repeat over and over.

Pumping in government money to achieve growth targets is “not sustainable” and China will instead focus on encouraging private investments in railways, infrastructure, energy, telecommunications, health care and education, the story said.

China’s benchmark Shanghai Composite Index has gained 1.8 percent since Wen’s call for growth was published May 20. The National Development and Reform Commission may be accelerating construction approvals as part of China’s response, with the planning agency last week saying that Baosteel Group Corp. and Wuhan Iron & Steel Group won permission to build 134 billion yuan ($21 billion) of new factories. The NDRC had delayed approving the two steel projects in 2009, citing industry overcapacity.

Credit Suisse said spending on investment will probably range from 1 trillion yuan to 2 trillion yuan. Standard Chartered said China is starting a “mini-me” version of the prior stimulus.

China’s economy is forecast to expand 8.2 percent this year, based on the median estimate of analysts surveyed this month by Bloomberg News. That would be the least since 1999.

“Unlike in 2008 when the Chinese government rushed to spend, the new stimulus package will be small and modest,” said Zhang Xinfa, an economist with China Galaxy Securities Co. in Beijing. Bank lending will play a smaller role in the new round of investment, he said.

It increasingly looks like that the episode of coordinated global interventions, which started in 2011, may be over rather prematurely, leaving just one former Princeton university professor in charge of the global negative cost of money.

The people will demand printing next time aorund...trust me on this one. The central banksters will be off the hook, as it will not have been their idea. Some subset of "the people" will demand it, and that will be that. The media will have a story to tell, and they will tell it and tell it:

"Under unrelenting pressure from political and popular groups worldwide, in order to alleviate the devastating financial collapse that the entire world has experienced, the Federal Reserve Bank, the BoJ, the ECB, and Bank of China have agreed to coordinated monetary actions to spur economic growth."

Yep, until they can't save it anymore. Also that China rumor is what kept the market in green today and now it was shot down (don't know why they didn't shoot it down before the close). It's almost as if the rest of the world is trying to jawbone the market into positive. The problem is that the EU did it so much that now people see through it, and other countries attempt at it aren't as effective and don't last as long.

Colombian Gringo wrote ""Of course they will stimulate to save their worthless asses.""

The only stimulus these bastards will get is when they will pay for their mistakes. Otherwise they should go to a sensual massage parlor and get stimulated with a hand job done by some asian chick for $80.

The 1.3 Billion Middle Kingdom People are very dissimilar then Americans and their society is structured differently from what I read...they have no unemployemnt benefits, no free health care, no free Section 8 housing, no free cell phones, no free EBT cards, and no free SNAP....and they don't retire at 52 sipping ouzo or California Merlot.

China does have unemployment benefits, socialized (basic) healthcare, highly subsidized government housing, a localized "minimum income" standard and a highly progressive tax system. Not to mention subsidized public mass transit, no property taxes, and farmers are 100% untaxed on their agricultural incomes regardless of how much they manage to pull in.

And global markets once again make complete asses of themselves. And somehow we are supposed to be more confident in this jerry rigged, Pachinko machine, algorithm infested, TBTF bank poisoned system. Right. Sure. I'm certain Average Joe's everywhere are rushing to buy shares of Netflix and The Gap and Chipotle.

Yup, Greece will announce they found Medusa living in a cave, but she can turn people into gold isntead of stone. Millions will be sacraficed but Europe will be savedd. Oh wait isnt that waht "austerity" is doing?

Bernanke will hit the print button because American leaders are elected and stocks must be rising, the dollar must be killed to boost exports and GDP needs the government spending to keep from deflating. The only question is whether QE3 happens in July or August.

Denial among the Banks is so strong, they have lost their minds. The massive public and private debts already can not be repaid so..... wait a minute, they essentially have nothing to lose one way or another, they are FU--ed.

"China has no plan to introduce stimulus measures to support growth on the scale unleashed during the depths of the global credit crisis in 2008 according to the nation’s state-run Xinhua News Agency."

china's vaunted long game is mystique without warrant--Zhou Enlai's fabled retort to the question, "what do you think of the french revolution," ... "it is to early to tell." the cocktail talk of management consultants and financial sinologists for decades, was a false translation. Enlai was talking about the student riots of 1968 rather than the 1789 thing.

Futures brokers would need to get approval from a top executive before making big withdrawals from customer accounts under a rule now pending and referred to in the industry as the "Corzine rule", after MF Global's former CEO Jon Corzine.

Tim Duncan handed Stephen Jackson the ball, and suddenly it was 2003 all over again. Jackson raising up from 25 feet. Duncan's eyes growing you're-not-really-going-to-shoot-that wide. The 3-pointer sliding through the net. Duncan patting Jackson on the head, the roar of the AT&T Center

Antonio Spurs, another tense late-May playoff battle turning in their direction.The Spurs rallied to take Game 1 of the Western Conference finals from the Oklahoma City Thunder, needing just three minutes to erase a nine-point deficit in the final quarter. It was their 19th straight victory, tying the NBA record for the longest winning streak extended in the postseason, and, no, Duncan didn't expect this. Truth be told, he wondered, at times, like everyone else. After all those playoff wars won and PhoeNIx Suns JerseYs lost, wouldn't the Spurs finally dismantle themselves and try something new?I heard we were dead," Duncan said.Duncan laughed. He was sitting at the Spurs' practice facility, two days before the start of these conference finals. Gregg Popovich walked past and chided him for sharing a private moment with a reporter. Across Duncan's 15 NBA seasons, the only coach he's known is Popovich. The Spurs' All-Star guards – Tony Parker and Manu Ginobili – have played with Duncan for LOs AngeleS LakErs JErseyS 11 and 10 seasons, respectively. This isn't normal. Not in today's pack-for-South-Beach NBA. So, yes, Duncan wondered. He wondered whether Ginobili would eventually want a bigger role. He wondered whether Parker, in what Duncan likes to call "his Hollywood years," wanted a bigger market. And he wondered whether his own body would allow him to keep playing at the level he needed."But we've all found a home here in San Antonio," Duncan said, "and

So the machines will figure out that ECB = no stimulus. China = no stimulus. So...that must mean US will launch QE Infinity! Then there will be a rally, again, on lousy data and hopes of QE Infinity. This game was old two years ago. Now it's just painful.

The Fed has been sitting back and not doing much, as it amounts to Ben farting. They've been letting everyone else do the meaningless heavy lifting for them. The problem for Ben is, the rate of the collapse is greater than any QE he can provide. Sure he can provide 200 trillion dollars, but it'll just make everything collapse even more. No matter what they print, the collapse will be bigger than what they create.

Chinese should build more factories. Just not ones that deal with exporting crap for western fiat. There's plenty of room for them to build factories for their domestic needs.

There is a shortage of what we and the world needs, caused by the overabundence of what we don't need but the oligarchs have given us.

Unless actual growth resumes, we collapse. If we print for fraud, we collpase. If we collapse the fraud, and create credit for actual wealth producing endeavors, we survive. The markets, and the people/countries that make up them don't believe in the fraud anymore. They will believe in the important stuff, but not the rest. What we currently have everything stacked into, is, the rest.

Only a few more days until the Irish referendum. This time, the Irish may actually vote for a REAL change. Gerry Adams is leading the NO vote.

this probably has more to do with (re-)election campaigns than anything else. the equity markets are so scared right now that just the threat of closing the cash spigot will send them correcting. people who think the dow = the economy will panic, demand more printing, and ben will be happy to oblige just in time for november.

China doesn't need govt. stimulus to grow it just needs to squeeze business, as it has been doing. Govt is pushing investors into business and commodities as stocks and property are unattractive.

Some idiot academics are saying 3% growth. However, Shenzhen exports up 10% compared to April of last year. Foreign trade in Shenzhen also saw a 15.7% increase compared to the same period in 2011.

The reality is China govt. more competent ref supporting economic growth than US. Helicopter Ben is lucky to be born in the USA he would be working in McDonalds if he was born in China as that is his what a person of his intelligence should be doing.

My brother in law who is a pastor has given up on society. He said that he just doesn't think people are smart enough to be helped anymore. If this is the world we now live in, the enemies of God have won, let the rapture begin.

You can have your face eaten or get carjacked, gangraped, castrated, burned and shot. Or just be walking home after watching fireworks and have yourself, wife, daughter, and son attacked by a 150 person large ghetto mob.

When everything goes to shit you can't help but laugh and realize it is the fault of all the shits that talk about it and do nothing.

“China’s economy is forecast to expand 8.2 percent this year, based on the median estimate of analysts surveyed this month by Bloomberg News. That would be the least since 1999.”

The figure of GDP growth above led me to dig in a bit, do a little research on a country I know so little about in the current world. They have a fabulous track record for growth by % of GDP per World Bank 2007 – 2010 http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

Their nearest competitors on this record per my read are Ethiopia, and Myanmar - strange bedfellows.

Impressive to see how 1.3 billion people put their boots on, went to town and kicked ass to raise their standard of living to such a high degree in such a short time. Bruce Lee and Sun Tzu would be proud.

Whatever China is going to do, you can bet all the (“tea in China” = worlds derivatives) on the fact they are not looking at this world through rose colored glasses, everybody is trying to figure out WTF is going on from so many dimensions: long view/short view, Opportunity/risks, immediate issues, and what gets done when by who and how much is it going to cost, who is going to pay?

All the Oracles are spun #11 trying to figure out.. WTF is going to happen and when?

All data is nonesense but reality is reality, China will keep on growing as it makes everything and has all the cash. There is still another couple of decades of growth in China via exporting to all the countries that everyone forgets many of which have lots of commodities. Add to that their embryonic domestic economy which is exploding with growth.

In reality data is a tool, a stout walking stick suitable to gain some traction across those slippery boulders of the rushing rivers, or thrash the feral dogs about to submission because they thought you were meat and were wrong.

China’s growth trajectory is heading down, way down now, this could either tank to 0, level out, or go up or bounce around.

If they have a bunch of our cash, and need some help, I’m sure we can make some good things happen for them. Food is good, nothing like a side of Iowa pork on the North Korean frontier to keep a guy all randy to get home to his girl.

What about biodegradable plastic? They got it from us..it takes corn.

What if we redirect our best scientific and math minds from trading algos to the real world?

Our IP laws suck, I’m sure if the ligations part of our society had their way we would be charging a $1 apiece for each time they ate a piece of toast each day under licensing agreement.

On the reverse side, their IP laws suck worst.

Our world leaders to my knowledge are not having these conversations now or if they are they are not sharing this perspective, maybe they are but I am not listening now, perhaps I never will.

Fight the good fight brother dragon, be you red or white or silver, or the Chinese luck kind.

All the savings, eh? Sure, they have large holdings of the debt of a nation that could conceivably default by CUSIP. Advantage who? They have a corporate sector that probably is unprofitable, save for gains from real estate. They have a public sector that is not only unprofitable, but holds non-performing loans to the tune of 40% or so, which is enough to wipe out every bank in the country faster than anything Spain could do. They have a real estate market ostensibly valued at $150 trillion, which is two and a half times worldwide GDP, and more money than China has earned in its "glorious" 5000 year lightbulb history (by the way, even with that headstart, somehow they didn't get around to making the first lightbulb). Loans on the margin---whether from state banks or via the shadow banking system---are made based on that delusional valuation, so it IS an issue, just like it was an issue in Japan in 1989 when Japan's supposed land valuation was equally absurd. In the last few years, the return on new debt, in terms of GDP, is abysmal and not much more efficient than Greece. They are also losing friends faster than Facebook owing to constant bullying, usually over some piles of rock.

I have a sneaking suspicion you equate "reserves" with "profits". Perhaps you might take a moment to understand why and how China's M2 growth dwarfs anything Ben tries to do.

I'm sure your overlords appreciate your incessant cheerleading, but truth be known, you kind of sound like a foreign English teacher away from home for the first time in a faraway land.

In 2009 China surpassed the United States to become the world’s top energy consumer according to the International Energy Agency, consuming 2,252 billion tons of oil equivalent energy from sources such as coal, nuclear power, natural gas and hydro-electric power—about 4 percent more than the United States.

China has come a long way in a short period of time. In 2000, it consumed half the energy of the United States.

Bears repeating, in 2000 it consumed half the energy of the United States.

China now accounts for 12 percent of the world’s energy demand but its rate of consumption is growing more than four times the world’s rate. Energy consumption rose by 208 percent in China between 1970 and 1990, compared to 28 percent in most developed countries. It is expected to double in the next 20 years. Every two years China builds as many power plants as Britain has since the 18th century.

China used the energy equivalent of the burning of 2.7 billion tons of coal in 2006. China has vowed to cut energy consumption for every unit of economic activity by 20 percent by the end of 2010. But the opposite is happening. China is consuming energy at a rate much higher than experts had originally predicted, China will use the amount of energy in 2010 that experts originally predicted it would use in 2020.

I don't get it - when did we start believing the ECB or BOC statements. If anything these would be bullish indicators. And do they really need to publicly announce thier market interventions? Really I don't see the point of quoting these people Does the Fed really have achoice at this point - they are suddenly going to stop feeding this monster they've created? The question is not "if" but "when" and "how much" and "who" will be the major award winner on this round - if it really matters. The Fed will have to time the stimulus so that we get the quick rush of wealth before the election and the bitter taste of inflation falls after.

It is interesting that there does seem to be a lot of finacial news lately - as if the masters are losing control of the game.

Great points Dapper Dan and I especially like your comment "China may have been around 5000 years but they were dark for 4950 years".

No one that understands China denys that they have a lot of problems that need fixing just as all countires do. The big difference is that China is still growing and increasing exports, growing the domestic economy, buying up commodities world wide, not waasting too much on their military machine compared to other major powers and increasing the quality of life of the majority etc

The key difference is that the quality of life of their people gets better, today is better than yesterday and they can be optomistic about tomorrow . That can not be said in the US or Europe.

I am actually a white dragon from a western country, ex military and currently an entrepreneur in the land of the Dragon.

I agree that we all need to fight the good fight. We shouldn't allow others to divide us and we should build our networks of friends and like minded individuals. I think there is a half decent chance that the shit will hit the fan and we will all need support to get through it.

I am also of the "grab bag and silver" School of thought and I share that philosophy with my network. Keep up the good work on your end.

By cash I mean all the Renminbi in the bank accounts of all the Chinese people. All the Gold and Silver they have stuffed away. The property that all the people own. The value of all the businesses that are continuing to grow as the domestic economy grows and China accesses all the unloved export markets. The cash in all the company bank accounts.

Bottom line China has shitloads of cash.

No I did not mean the couple of trillion in reserves as that is "chump change" used for buying foreign commodities and assets.

And no I am not an English teacher, instead an entrepreneur with multiple businesses and an extensive China based network, who has been around the world several times dozens and dozens of countries etc There is no overlord, accept the wife. I am just tired of all the nonesense written about China and make a point of helping people understand reality.

Currency and finance is only one tool in The Game. The Game is about global supremacy, and many national leaders outside of the West are thinking in terms of nation-states: not corporations, economic unions, and trade agreements. Does China have problems? Of course: many of them. But China is playing The Game; a strong currency in the face of Western devaluation grants China access to resources and allies. China is not the only nation playing The Game. Didn't a couple nations just snatch their resources back from Europe?

The nation-state is not dead, at least in those parts of the world not ruled by a central committee of fund managers and bankers.